Evaluating the Evidence on Union Employment and Wages

Linneman, Peter; Wachter, Michael L.; Carter, William H.

doi:10.2307/2523428

Cited by 28 publications

(23 citation statements)

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“…Using industry level data, Linneman, Wachter, and Carter (1990) found a strong relationship between the size of the union wage effect and employment growth in a given industry, and concluded that the union wage effect has been responsible for as much as 64% of the decline in union density in the U.S. private sector (excluding construction) in recent years.…”

Section: Theoretical and Empirical Backgroundmentioning

confidence: 99%

“…Clearly, recent studies in both the United States (Linneman, Wachter, and Carter 1990) and Canada (Troy 1990(Troy ,1992, using macrolevel data, do indicate a dramatic decline in union density in the private sector since the mid-1970s. This decline, however, could be due to several different factors, such as an inability to organize new firms, an increasing rate of decertifications, a higher closure rate for union firms than for nonunion firms, or slower employment growth in union firms than in nonunion firms.…”

Section: Theoretical and Empirical Backgroundmentioning

confidence: 99%

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The Effect of Unionization on Employment Growth of Canadian Companies

Long¹

1993

ILR Review

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This longitudinal analysis of employment in 510 Canadian firms over the period 1980 to 1985 provides evidence that union firms in both the manufacturing and nonmanufacturing sectors experienced substantially slower employment growth than comparable nonunion firms. Controlling for industry sector, firm size, and firm age, the author finds that within the manufacturing sector, union firms grew 3.7% more slowly per year than nonunion firms, and within the nonmanufacturing sector, union firms grew 3.9% more slowly than nonunion firms. Small firms in both sectors, however, appear to have escaped any negative union effect on employment growth. Of the control variables, firm age appears to be much more important than firm size in explaining employment growth.The past decade or so has witnessed a dramatic surge of interest in and research on the impact of unions on various aspects of company performance, such as productivity and profitability. Surprisingly, however, relatively few empirical studies have examined the impact of unionization on employment growth within established firms, despite the obvious importance of this issue,

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Section: Theoretical and Empirical Backgroundmentioning

confidence: 99%

Section: Theoretical and Empirical Backgroundmentioning

confidence: 99%

The Effect of Unionization on Employment Growth of Canadian Companies

Long¹

1993

ILR Review

View full text Add to dashboard Cite

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“…A series of papers investigating the union wage premium during the 1970s suggests instead that union wage premium gains were basically accidental, the result of unanticipated inflation plus the COLAs that helped protect real wages of union members in the 1970s, when the bulk of the premium increase occurred (Wachter, 1986;Wachter and Carter, 1989;Linneman, Wachter, and Carter, 1990). 10 Wages failed to adjust quickly, once mistakes in expectations became evident, because labor law, which takes the stance that the two parties are part of a longlived and continuing relationship, and which requires that a firm must bargain with the union, makes drastic changes in contracts very costly (Wachter, 1986).…”

Section: Two Alternative Explanationsmentioning

confidence: 99%

“…The wage gap in these sectors increased during the expansions between 1975 and 1979 and persisted after the 1982 recession (Edwards and Swaim, 1986;Linneman and Wachter, 1986). As of 1988, relatively little downward adjustment had occurred despite large declines in union employment (Linneman, Wachter, and Carter, 1990;Wachter and Carter, 1989).…”

Section: Introductionmentioning

confidence: 99%

Wages in the Steel Industry: Take the Money and Run?

Deily

1998

Industrial Relations

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Sharp increases occurred in the wages paid by integrated steel firms in the 1970s despite reductions in employment caused by the industry's decline. This article reviews several explanations suggested for this puzzling outcome and evalutes them using information on the size and timing of wage increases, on investment decisions, and on expectations about future inflation and demand growth. Overly optimistic expectations for demand growth and unexpected inflation appear to explain much of the data. 153

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“…All remaining errors are attributed to the author. [Lewis, 1983;Linneman et al, 1990;Leonard, 1992;Pantuosco et al, 2001;Vedder and Gallaway, 2002] and Britain [Metcalf, 1993[Metcalf, , 1994Addison et al, 2001Addison et al, , 2003. Therefore, it is worth extending the issue to other countries to see if there exist any similarities or differences in the effects of unionization compared to those of the U.S. and Britain.…”

Section: Introductionmentioning

confidence: 99%

Unionization, Unemployment, and Growth in Korea: A Cointegration Approach

Kim

2005

Atl Econ J

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Thanks to numerous empirical research studies, a general consensus has been reached on the effects of labor unionization on the economy such as unemployment and economic growth (GDP). However, most of the previous research examines the effects of labor unionization on the U.S. and U.K. labor markets using multiple regression models. By applying different statistical tools (multivariate cointegration analysis and vector error correction model) to Korean data, this paper finds: (1) there is a long-run equilibrium linkage among unionization, unemployment and economic growth; and (2) unionization unidirectionally and significantly Granger-causes unemployment and economic growth. Copyright International Atlantic Economic Society 2005J, J3,

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Evaluating the Evidence on Union Employment and Wages

Cited by 28 publications

References 0 publications

The Effect of Unionization on Employment Growth of Canadian Companies

The Effect of Unionization on Employment Growth of Canadian Companies

Wages in the Steel Industry: Take the Money and Run?

Unionization, Unemployment, and Growth in Korea: A Cointegration Approach

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